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Singapore Investment


TNB, Supermax, Maybank, BHIC, KESM, United Malacca, Glomac, Kronologi Asia, Apex Healthcare, VS Industry and Ornapaper

KUALA LUMPUR (Sept 21): Here is a brief recap of some corporate announcements that made news on Wednesday involving Tenaga Nasional Bhd, Supermax Corp Bhd, Malayan Banking Bhd, Boustead Heavy Industries Corporation Bhd, KESM Industries Bhd, United Malacca Bhd, Glomac Bhd, Kronologi Asia Bhd, Apex Healthcare Bhd, VS Industry Bhd and Ornapaper Bhd.

Tenaga Nasional Bhd (TNB) is investing RM21 billion in its Grid of the Future programme from 2022 to 2024 to enhance its transmission and distribution network's readiness and reliability. TNB president and CEO Datuk Baharin Din said at the regional level, the company is proactively identifying transmission grid locations that will improve market integration, and will work closely with local authorities. He said Asean power utility companies need to accelerate collaborations towards achieving an interconnected Asean Power Grid in support of the region’s collective goal of achieving net zero emissions, as member countries shift to cleaner and more sustainable energy.

Supermax Corp Bhd has resumed its share buyback, with the company buying 3.2 million shares for RM2.39 million on Sept 2 at between 73 sen and 75 sen per share. Following the share buyback, Supermax's cumulative number of outstanding treasury shares stood at 58.96 million shares.

Malayan Banking Bhd (Maybank) said it plans to run a pilot climate stress test in 2022 to better understand how its business strategy and performance will be affected by climate change. Maybank, which did not specify the timing of its planned pilot climate stress test in its Sept 1 corporate presentation, said the group is addressing Malaysia's upcoming regulatory requirements on climate stress testing. According to Maybank, the group has been engaging with stakeholders, including regulators as well as those involved in business and support functions, in an effort to develop a prototype climate-scenario analysis.

The Centre to Combat Corruption and Cronyism (C4) has questioned why Tan Sri Lodin Wok Kamaruddin — former chairman of Boustead Heavy Industries Corporation Bhd (BHIC) and one of the key figures in the Littoral Combat Ship (LCS) scandal — has not come under the scrutiny of the authorities, given his involvement in the supply chain companies for the scandal-tainted project. C4 said that Lodin, who was connected to the scandal via a web of BHIC-owned subsidiary companies, remained largely isolated from any formal investigation by anti-graft agencies. The anti-corruption non-governmental organisation said that during his leadership of BHIC, Lodin had facilitated the set up of shell companies such as Contraves Advanced Devices Sdn Bhd and Contraves Electrodynamics Sdn Bhd — the main contractor responsible for the procurement of various components for the LCS — with the intention of using the companies as vehicles to avoid detection of fund misappropriation.

KESM Industries Bhd posted its third consecutive quarter of net loss for the fourth quarter ended July 31, 2022 (4QFY22) on lower revenue as the group scales down its electronic manufacturing services (EMS) business, coupled with higher expenses for repairs, maintenance and utility. The group reported a net loss of RM2.5 million or 5.82 sen per share, more than three times its net loss of RM654,000 or 1.52 sen per share a year ago.

United Malacca Bhd’s net profit rose 16.59% to RM24.3 million for the first quarter ended July 31, 2022 (1QFY23) from RM20.85 million a year earlier, on higher earnings contribution from its Malaysia operations on the back of higher palm oil prices. Quarterly revenue climbed 45.77% to RM167.44 million — its highest to date — from RM114.87 million for 1QFY22. United Malacca said its Malaysian operations saw a quarterly profit of RM36.2 million, which was 50% higher than the RM24.1 million reported for 1QFY22. In contrast, the group’s Indonesian operations recorded a plantation loss of RM3.2 million compared with a profit of RM900,000 previously due to lower production, as well as a higher unit cost of production despite higher crude palm oil prices.

Glomac Bhd’s net profit tripled to RM5.18 million for the first quarter ended July 31, 2022 (1QFY23), from RM1.73 million a year earlier, on higher revenue contribution from increased sales and construction activities. Quarterly revenue more than doubled to RM65.49 million from RM28.84 million on the back of higher contribution from its property development segment. Glomac noted that it achieved higher new sales of RM52 million, compared with RM30 million in 1QFY22.

Kronologi Asia Bhd’s net profit for the second quarter ended July 31, 2022 fell by 39.2% to RM3.1 million on a 15% decline in revenue to RM63.13 million. Its performance was below expectations, the group acknowledged, but is optimistic of a better second half. The data management solutions company said its reduced profit was due to higher finance cost and depreciation of property, plant and equipment arising from the investment in infrastructure equipment for EDM As-A-Service. On-going macroeconomic and geopolitical uncertainties impacted sentiments in the first half of 2022, which included continued stringent lockdowns experienced in China resulting in commercial and production delays, it said, as did soaring inflation and increasing interest rates.

Apex Healthcare Bhd has proposed to team up with Shanghai Pharmaceuticals Holdings Co Ltd to market their branded pharmaceuticals, consumer healthcare products and medical devices in selected Asean and other international markets. Apex, through its wholly-owned Singapore subsidiary First SGC Pte Ltd, on Wednesday entered into an agreement with Shanghai Pharmaceuticals’ unit Shanghai Pharmaceutical Import & Export Co Ltd to incorporate a joint-venture (JV) company in Singapore within six months' time to undertake the business. Apex will take up a 40% stake in the company via an investment of S$1.2 million (RM3.9 million), with the remaining equity interest held by Shanghai Pharmaceuticals.

VS Industry Bhd’s wholly owned subsidiary VS Capital Management Sdn Bhd (VSCM) has issued Islamic Medium-Term Notes (Sukuk Wakalah) of RM500 million in nominal value. The Sukuk Wakalah is based on the Shariah principle of Wakalah Bi Al-Istithmar. Proceeds from the sukuk issuance will be utilised for working capital requirements, capital expenditure, general corporate purposes, as well as refinancing of existing borrowings or financings of the group. It will also be used for the provision of Islamic intercompany financing to VS Industry and the subsidiaries within the group.

Ornapaper Bhd has received a conditional mandatory takeover offer from Intisari Delima Sdn Bhd to acquire the remaining shares in the company not owned by Intisari Delima at RM1.06 per share. The takeover offer was triggered after Intisari Delima acquired 15,000 shares representing 0.02% in Ornapaper in the open market on Wednesday at RM1.06 per share, increasing the shareholding of Intisari Delima and persons acting in concert with it to 33.01% from 32.99%.


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